Factors such as the increasing number of cyber threats, rising adoption of the bring-your-own-device (BYOD) policy in workplaces, limitations of traditional firewall, surging implementation of the internet of things (IoT), and rising number of financial organizations across the globe are expected to drive the growth of the next-generation firewall (NGFW) market at a CAGR of 11.9% during the forecast period (2020–2025). According to P&S Intelligence, the market size will increase from $2,706.9 million in 2019 to $5,188.8 million by 2025. Moreover, the market is witnessing a trend of surging adoption of IoT technology.
One of the major factors aiding the market growth is the increasing cases of cyber threats. For instance, about 2.9 million cases of cybercrime were reported in the U.S. in 2018. Thus, the requirement of cyber-attack prevention solution in the current business landscape is surging. NGFW is a security solution that can be easily combined with the existing technologies in a company’s network to enhance security and data breach protection and provide comprehensive network visibility. This technology is also effective in preventing intrusion, protecting the cloud, and offering application awareness and control.
The enterprise size segment of the next-generation firewall industry is bifurcated into large enterprises and small and medium enterprises (SMEs). Between the two, the large enterprises category accounted for the larger share in the market in 2019, owing to the increasing requirement for enhanced digital security solutions to manage and secure vast amounts of data in big companies. On the other hand, the SMEs category is projected to observe the higher CAGR during the forecast period, due to the increasing focus of such companies on deploying the cost-effective NGFW solutions.
Moreover, based on the industry segment, the next-generation firewall market is classified into banking, financial services, and insurance (BFSI); aerospace & defense; government & public utility; information technology (IT) & telecommunication; retail; healthcare; manufacturing; and others. Among these, the BFSI industry generated the highest market revenue in 2019. This is ascribed to the surging adoption of digital technologies, rising number of financial institutions, and increasing need to prevent cyberattacks. Whereas, the healthcare industry is projected to observe the highest CAGR during the forecast period, owing to the increasing cases of data breach in the sector.
Geographically, the next-generation firewall industry in the Asia-Pacific (APAC) region is expected to witness the highest CAGR during the forecast period. This can be ascribed to the rising number of SMEs, surging demand for IoT devices, increasing cases of cyber threats, and growing focus of governments on data security, in the region. Whereas, North America held the largest market share in 2019, owing to the presence of a large number of market players, rising adoption of cloud solutions, and growing initiatives of governments for the safety of public data.
Thus, the rising number of cyberattacks and the increasing number of financial institutions across the globe are expected to propel the market growth during the forecast period.